The Buddy Technologies Ltd (ASX: BUD) share price jumped higher today. In afternoon trading, the Buddy share price was up more than 18% to close the day's trade at 5.1 cents. The increase came after the release of the company's unaudited July 2020 results in a letter to shareholders from chief executive officer, David McLauchlan.
Today's gains follow on a series of strong trading days that have seen the Buddy share price rocket 70% higher in August. Year to date, Buddy's share price is up 30%. Though shareholders who bought as recently as 23 July would be sitting on gains of 420%.
What does Buddy Technologies do?
Founded in 2006, Buddy Technologies provides cloud-based technology that aims to make its customers' work and living spaces smarter, via IoT (internet of things) connected devices.
Buddy is a leading provider of smart lighting solutions. The company's Wi-Fi-enabled lights are currently used in nearly 1 million homes and sold in over 100 countries.
The company's platforms include Buddy Cloud, allowing access to storage and data from any environment and Buddy Ohm. Buddy Ohm is intended to improve operations, savings and sustainability by providing real time building operational data.
What did Buddy's letter to shareholders say today?
In his letter to shareholders, chief executive officer David McLauchlan announced that July had just marked the company's first earnings before interest, tax, depreciation and amortisation (EBITDA) positive month in 2020. Consolidated revenue came in at $4.9 million. That was up 90% from June and 80% from July 2019.
McLauchlan noted that government subsidies related to COVID-19 were down 66% from June. That means that July's unaudited customer revenue was up 138% from June and 72% from July 2019.
The company's total current assets also increased 18% over the previous month, to $10.7 million. That includes cash holding of $1.9 million.
Looking ahead, McLauchlan cautioned investors to set appropriate short-term expectations, noting investors "should not necessarily expect linear or 'straight line' results from here on out. This month's results were strong in large part because of significant deliveries of LIFX White lights."
But McLauchlan assured that the remainder of the year still holds a lot of promise for the company, with record orders of LIFX White lights received last week portending a strong October. He said demand across the board remains high.
